MR. McCLELLAN: Good afternoon, everybody. Just a couple of brief opening remarks. You heard from the President earlier today. The President is optimistic about the direction our economy is headed, it continues to grow strong. Today's latest GDP numbers are further evidence that the economy is growing even stronger, but there is still more to do and the President continues to call on Congress to act on his six-point plan to create an even more robust environment for job creation.

MR. McCLELLAN: I just said it. Secretary General de Hoop
Scheffer. Do you want to jump in? Is your Dutch better than mine?
(Laughter.) His Texan isn't, though.

Anyway, the President is pleased to welcome the Secretary General
here to the White House and looks forward to having a good discussion
with him on continuing to move forward on the transformation of NATO to
meet the 21st century threats.

Q In terms of the Medicare cost estimates, what do you
attribute the difference between the CBO and OMB numbers to? Was there
differences in the final bill that weren't anticipated?

MR. McCLELLAN: I don't profess to be a expert actuary, but --

Q Well, what is OMB telling --

MR. McCLELLAN: -- you have to keep in mind that these are
estimates of something that is very difficult to estimate, I guess is
the best way to put it. You have the CBO actuaries will do their job
to make their best estimate of what the legislation will cost. And
then you have the actuaries over at Health and Human Services who do
their best job to estimate what those costs would be. And that's what
they have done for our upcoming 2005 budget. But there are some 400 --
more than 400 pages in this legislation that was passed by Congress,
and it was a very important piece of legislation to be passed.

But there are hundreds of assumptions that you make when you make
those estimates. And, obviously, changes in one or two of those
assumptions can significantly impact those estimates.

Q Well, that's why I asked, was there a difference in the final
bill that wasn't anticipated in the original cost projection? Has OMB
told you that CBO didn't estimate this quite correctly? Or there's a
new charge in here that we have to factor in?

MR. McCLELLAN: No, that's what I was talking about earlier. This
is really the first time that we've come up with a full and precise
cost estimate because we were going through our budget processes -- the
first time that the HHS actuaries have come up with a full and precise
cost estimate because we were going through the budget process.

Obviously, we have the CBO numbers, the Congressional Budget
Office, which Congress is required to work from by law. And so those
were the numbers everybody was working from when the legislation was
moving forward. Congress, or the Congressional Budget Office continues
to estimate that the legislation will add an additional $400 billion
over the next 10 years.

Q But OMB hasn't told you, well, we estimate this cost to be
higher or this cost to be higher? They haven't told you where they've
found the differences?

MR. McCLELLAN: I think as the legislation was moving forward, that
you always look at different aspects -- aspects of the legislation.

Q Because it's a substantial difference in the figure that OMB
somewhere along the line must have said, here's where CBO was wrong.

MR. McCLELLAN: Actually, over the -- if you keep in mind over the
course of the next 10 years, spending on Medicare and Medicaid is going
to be somewhere around $6 trillion. And you're talking about a
difference of about somewhere in the 1 to 2 percent range over those 10
years in the cost estimates overall of Medicare and Medicaid spending.

Q But you can't do that, you've got to look at the drug plan.

MR. McCLELLAN: You're talking about the new spending.

Q Yes. You've got to look at the drug plan here, you can't
tell me that we're going to spend $6 trillion and this is only a
fraction of it.

MR. McCLELLAN: And let's keep in mind that the President committed
to pass legislation that would provide seniors with more choices and
better benefits and make their health care more affordable. And
competition will help, as the President pointed out, drive down the
cost of health care over the long-term. And that's what we've
introduced into the mix. So this was a very important piece of
legislation to get passed for America's seniors.

Q But why can't you just tell us why the numbers of different?

MR. McCLELLAN: I'm going to answer this, and I'm going to keep
moving. I just -- no, I just told you why, because there are hundreds
of assumptions that the actuaries make. And so the HHS actuaries had
some different assumptions from the assumptions that were made by the
actuaries at the Congressional Budget Office.

Q Scott, to follow on that, are you telling us, on the day the
President signed it and presented it to the American people, made it
law, he either thought it was going to cost $400 billion over 10 years,
or he didn't know how much it was going to cost and he didn't care?

MR. McCLELLAN: No, the President -- in fact, you just heard from
the President -- we've been going through our budget process; the
budget will be released on Monday. The President was briefed just, I
believe it was two weeks ago today when he was briefed on this aspect
of the budget and was informed about the new -- or I guess this was the
first estimate -- that we put forward the estimate that the HHS
actuaries came up with in that budget process. And -- I'm sorry, go
ahead, Keith.

Q Scott, the actuaries run numbers all the time, is my
understanding. Did the President check --

MR. McCLELLAN: No, that's why I said -- I mean, obviously, there
are different aspects of the legislation I think actuaries are looking
at and looking at all the time. But this was the first time that the
actuaries came up with a full and precise cost estimate to provide for
our budget, as we present that on Monday.

Q But are you saying, then, that the actuaries had no idea in
November that the final number would at least be above $400 billion
somewhere --

MR. McCLELLAN: Well, again, there's the Congressional Budget
Office actuaries and the HHS actuaries. And so I would describe it the
way that I did just a second ago.

Q Did the President try to check with his own actuaries, his
own estimators, did the President try to check with them in November,
to see if maybe this would cost more than what the CBO estimated?

MR. McCLELLAN: Again, the President was briefed on this recently,
just in the last two weeks. And that's when this estimate was
presented to --

Q So he did --

MR. McCLELLAN: -- to the President. But the President --

Q -- he waited for a briefing.

MR. McCLELLAN: -- as he said a little while ago, believes it was
important to make sure that these reforms were moving forward, to have
the intended impact, which was to provide seniors with prescription
drug coverage, some 40 million seniors that will now have access -- all
of them will have access to prescription drug coverage -- and to make
sure that the competition we were introducing will help address the
rising cost of health care and make health care more affordable for our
seniors.

Q Why in November did the President not want to know what his
own number crunchers were thinking?

MR. McCLELLAN: No, again, we do the -- as you are aware, you cover
Congress, so we have the budget that is put out every year in February,
at the beginning of February. Then we have the mid-session review,
where an update is put out. Now we're putting out the budget for
fiscal year '05. And when we go through that process, you go and look
and you make your estimates. And in this process, we look to the HHS
actuaries to come up with a full and precise cost estimate of that
legislation.

But like I said, we'll continue to look at the estimates as we move
forward. And just small changes in certain assumptions can have a
significant impact on those estimates. But the cost -- the overall
cost over that 10-year period for all Medicare and Medicaid spending,
like I said, is in the range of 1 to 2 percent difference.

Q Scott, as you know, conservatives are particularly concerned
about programs like this becoming runaway trains. And the reality is
that even with this revision, the President cannot say today that, in
fact, the Medicare prescription drug benefit won't cost even more than
is being projected, can he?

MR. McCLELLAN: David, actually, if you go back and look at the
debate that was had in Congress when this legislation was being passed,
this President fought for cost controls in that Medicare legislation.

Q That doesn't answer the question.

MR. McCLELLAN: I think this does get to the question that the
American people want to know about. We made it very clear that we were
going to fight for more choices and better benefits for America's
seniors, so that they could have more affordable health care coverage.
And we made it very clear that we were going to introduce competition
to make Medicare more affordable --

Q It could be more expensive than $540 billion, couldn't it?

MR. McCLELLAN: -- and this was an important first step in
modernizing and improving Medicare for the future.

Q It could be more expensive than $540 billion, couldn't it?

MR. McCLELLAN: You're absolutely right. We addressed the
importance of making health care more affordable for America's seniors
in that respect. But --

Q It could, in fact, be more expensive than $540 billion.

MR. McCLELLAN: It could be less expensive. The Congressional
Budget Office numbers are the numbers that Congress works from. And
their numbers say -- they estimate that it will be $400 billion over
the next 10 years. But what we know is that America's seniors are
going to receive more affordable drug coverage, they're going to
receive the kind of modern, preventive medicine that they deserve to
have, that will help prevent them from spending even more on health
care because it will address their health care needs earlier, before
they have to --

Q -- the rate of growth in the prescription drug arena alone is
off the charts. So is it realistic to believe that it could get more
expensive to get this drug benefit over 10 years, or less expensive?

MR. McCLELLAN: And when you talk about the rising cost of health
care, that's a high priority for this President, it's been a high
priority from day one.

Q That's understood.

MR. McCLELLAN: And that's why he has a comprehensive approach to
address the rising cost of health care. And he has put forward --

Q It's so comprehensive that it could be more expensive than
anybody thought.

MR. McCLELLAN: -- a number of plans that Congress should act on to
address those rising costs.

Q But he's prepared -- does the country need to be prepared for
the fact that it could be more expensive than anybody has said?

MR. McCLELLAN: We know that a government-run system is going to
continue to drive up costs. That's why it's important to introduce
competition. We know that there are other steps that we have to take
to address the rising cost of health care. But this was an important
first step for America's seniors.

Q I'm going to take that as a "yes."

Q Scott, staffers involved, congressional staffers involved in
drafting the legislation -- I have a couple questions here -- say that
as of June or July, the Medicare actuaries were predicting costs in the
range of $520 billion to $600 billion over 10 years, and that their
access to those actuaries was cut off by administration officials. Is
this not true?

MR. McCLELLAN: First I've heard about that, Wendell.

Q Second question --

MR. McCLELLAN: I will repeat what I said, that the actuaries,
obviously, were looking at different aspects of the legislation. But
this is the first time we've put forward a full and precise cost
estimate of the legislation --

Q I don't want you to go over where you've already been.

MR. McCLELLAN: -- based on what the actuaries said.

Q Second question. Did the administration -- perhaps the
President didn't receive a full and precise briefing, but did the
administration, itself, not have its own estimate of the congressional
bill, independent of the CBO's numbers?

MR. McCLELLAN: Like I said, the actuaries are always looking at
different aspects of legislation. So that's the way I would describe
it.

Q And no one here, you're suggesting, was aware of that?

MR. McCLELLAN: I'm telling you the way that I would describe it.
Again, there are different aspects of the legislation. There are many
aspects to this legislation, it's a very complex piece of legislation.
And so different aspects of that were looked at by actuaries.

Q Third question --

MR. McCLELLAN: But, again, I repeat what I said.

Q -- the White House is compelled by law to accept the figure
of the Medicare actuaries in its budget, just as the Congressional
Budget Office determines the cost that Congress must put to the bill,
itself. Does the White House actually think that the bill will cost
$535 billion over 10 years? Or do officials here think that the
savings will be such that the bill will be closer to the figure
predicted by the Congressional Budget Office?

MR. McCLELLAN: Well, again, Wendell, this is the budget that we
put forward and we rely on the HHS actuaries to make those estimates.
And so this is our budget, but, obviously, there's a Congressional
Budget Office number. We believe that both numbers represent a
reasonable range to look at as you move forward on this legislation.

But like I said, that as we move forward you'll continue to look at
those estimates and slight changes in assumptions can have a
significant impact on those estimates.

Q Doest that suggest that the cost will be somewhere in-between
the $400 billion and the $535 billion figure?

MR. McCLELLAN: It suggests that that's a reasonable range to look
at as we move forward.

Q Scott, the President has talked a lot about keeping down the
cost of government spending. Given this bad news on the Medicare
program, drug bill, that he was informed of two weeks ago, what was his
reaction? What did he do about it?

MR. McCLELLAN: Well, his reaction -- I think he actually described
what his reaction was just a short time ago. He wanted to make sure
that these reforms were going to have the intended effect for America's
seniors that we wanted them to have. And that was to provide them with
prescription drug coverage and to introduce competition to make health
care more affordable for America's seniors. We want America's seniors
to have more choices and better benefits, just like members of Congress
had. And, secondly, to make sure that his commitment to reduce the
budget in half remained in the budget. And it does.

We made it very clear, back during the mid-session review, of where
the deficit would be going forward. And we are going to cut that
deficit in half over the next five years under the President's plan.

Q Just to be clear, in other words, his reaction was not that
-- that maybe we ought to do something a little differently, tweak this
bill a little bit? In other words, it's full speed ahead?

MR. McCLELLAN: The legislation is a good piece of legislation.
And it's a better approach than a government-run system. And we're
introducing competition into this system -- into the system, which will
help address the affordability of health care for our seniors.

This legislation was important to pass to give seniors the kind of
choices and benefits that they deserve and to give them prescription
drug coverage.

Q So given this higher projection of the cost, is he open to
the idea of trying to tweak this a little bit as it goes forward?

MR. McCLELLAN: Well, again, when you're talking about the
long-term cost of Medicare, that's something we still need to work to
address. As I pointed out, we fought for cost controls in the
legislation. We didn't get everything we wanted, but we had some
important cost-control mechanisms in that legislation. And we will
continue to work with Congress moving forward.

Q Scott, when the President was asked about this Medicare issue
earlier, he said -- essentially put the onus on Congress. He said,
it's going to require Congress to be wise with the taxpayer's money.
Is he going to be willing to maybe forgo some of the things he's
proposed, like space, like the NEA, in order to essentially pay for
this new estimate without making the deficit worse?

MR. McCLELLAN: Well, now you're talking about Medicare and then
you're talking about some discretionary spending that is there. The
budget the President -- the budget that the President will outline will
continue to be one that meets our priorities and holds the line on
spending elsewhere in the budget. That's why I've pointed out, and the
President has pointed out, that the budget that will be released on
Monday holds discretionary spending to under 4 percent, and then when
you take out defense and homeland security it's under 1 percent.

This is a responsible budget, and it's important for Congress to
work with us to agree to that budget framework, and then work within
that framework and not go above it. That's what they did in this last
budget, and we will continue to press Congress to adhere to that
framework.

Q But the deficit is unified.

Q Right?

Q The deficit --

MR. McCLELLAN: Sorry? That's why we have -- John, that's why the
President has put forward plans to save and strengthen Social
Security. We know where it's headed. That's why we know we need to
make some important changes that will improve Social Security. We know
that we need to continue to look at the cost of Medicare moving
forward. That's why I said that this piece of legislation was an
important first step, and it took some steps to address those costs.

Q Scott, can I follow on that? If someone told me, in my
family's budget, that all of a sudden, oh, a cost is going to be a
third -- a big item like this is going to be a third over what I
thought it was going to be, my first reaction would be, either I've got
to go out and earn some more money fast, or --

MR. McCLELLAN: First of all, you're looking at new spending, and
you're not looking at the overall spending.

Q Can I finish? Or --

MR. McCLELLAN: Yes, but I want to correct you.

Q -- I'd have to figure out a way to cut spending elsewhere.
Did the President have any reaction, and say, oh, we'd better find some
budget cuts somewhere else, or we'd better forgo some tax cuts?

MR. McCLELLAN: And this goes back to what he said earlier, what
his reaction was, what does this mean for the deficit? And what it
means is that we're still going to cut the deficit in half over the
next five years.

Q Do they identify what's going to compensate for this?

MR. McCLELLAN: We're still going to cut the deficit in half over
the next five years. That's why the President is putting forward a
responsible budget, that when you take out defense and homeland
security, holds discretionary spending to under 1 percent.

Q You're not going to identify any program cuts or taxes --

MR. McCLELLAN: No, the budget, when he looks at -- when the
President comes up with a budget, he looks at all our priorities and
says, let's make sure that we meet our highest priorities, from winning
the war on terrorism to protecting the homeland, to strengthening our
economy, and make sure that those are fully funded. There are other
priorities there, as well. And then we need to hold the line on
spending elsewhere in the budget.

But, no, the President continues to believe we need to look at
these entitlement issues, as well. And that's why he has some plans to
address those.

Q Scott, can I follow up on that point? How much of the
additional cost for this falls within the five-year framework for
cutting the deficit in half? Or does most of it, if not all of it,
fall outside of that five-year framework and, therefore, not require
any major changes to the budget that you had in the works?

MR. McCLELLAN: Actually, we're going to have a budget briefing on
Monday, Dick. I would let you come to that briefing on Monday --

Q Well, but this is important --

MR. McCLELLAN: Exactly. And that's why we're putting forward the
phone books of the budget on Monday, and then we're going to have a
full briefing for you where we can go through all those issues.

Q Okay. More generally, if this bill had come to the President
with this price tag on it, would he have signed it?

MR. McCLELLAN: Well, one, that's a complete hypothetical because
what everybody worked from was --

Q It's not a hypothetical.

Q No, it wasn't at all. Not at all.

MR. McCLELLAN: -- was the Congressional Budget Office. And the
fact of the matter is --

Q Okay, if it had come to the President with this price tag,
would he have signed it?

MR. McCLELLAN: -- that the President supports this legislation and
signed this legislation because he made a commitment to provide seniors
with prescription drug coverage, and provide seniors with more choices
and better benefits. So he absolutely strongly supports this
legislation. And it introduces competition into the system, which will
make health care more affordable for our seniors. He strongly supports
this legislation.

Q So he would have --

MR. McCLELLAN: The way I would describe it is, we've now come up
with our estimate, or the HHS actuaries have come up with the estimate,
and the Congressional Budget Office has their actuaries who continue to
stand by their estimate of $400 billion over the next 10 years. And
either way, we strongly support this legislation because it was right
for America's seniors, and it was the best approach to take to help
America's seniors have the kind of care that they needed.

Q So he thinks the price tag on this bill, then, he's
comfortable with?

MR. McCLELLAN: Well, again, there are two estimates you're looking
at, both present a reasonable range. And he is very comfortable with
the fact that seniors are going to have better health care and more
choices to choose from.

Q I don't understand. How are you going to cut the deficit
when suddenly that number is X percent bigger than it was two weeks
ago?

MR. McCLELLAN: Well, we've talked about it. We talked about how
we were going to do it before. We did it during the mid-session
review. We'll talk about it again. I mean, obviously, the budget is
coming out again on Monday, the new budget for the fiscal year '05
year. But the President's plan will cut the deficit in half over the
next five years.

Q So the higher cost of Medicare is not going to have any
effect on the deficit-cutting plans at all?

MR. McCLELLAN: Well, that's kind of a broad statement there.
There are a lot of things you have to look at when you're coming up
with the number, in terms of what the projected deficit forecast is for
this next year. But we made it very clear back during the mid-session
review that gave you all a pretty good estimate of where this deficit
number would be for the upcoming fiscal year. And that's what we're
going to address to cut in half over the next five years through the
President's plan.

Q There's going to have to be some offsetting somewhere else in
the budget --

MR. McCLELLAN: Well, you're going to have -- Roger, I just said, I
mean, the phone books come out Monday, we're going to have a full
briefing on the budget on Monday.

Q Scott, two weeks ago today, when the President was given this
number, he was also preparing for his State of the Union address. Why
did the President not take advantage of that opportunity to level with
the people, say, Congress has bought a pig in a poke, here's what it's
really going to cost? (Laughter.)

MR. McCLELLAN: Bob, we put out the budget every year at this time,
and that's what we're doing again on Monday. The President made it
very clear to the American people what this legislation did. This
legislation provided seniors the prescription drug coverage that they
deserve. This legislation introduced competition into the system to
make health care more affordable for America's seniors. The President
was very clear in what this legislation did. And we always put forward
the budget every year at this time, and that's a detailed outline of
all our priorities.

Q And if I could just follow --

Q Your answers lead to a deeper question, Scott, whether this
President --

MR. McCLELLAN: Bob was finishing. He had a follow-up.

Q I will yield to Anne.

MR. McCLELLAN: Okay.

Q This President, does he make decisions on major issues, like
Medicare and the war in Iraq, without having accurate information, both
on the cost of Iraq, weapons of mass destruction, or the cost of
Medicare?

MR. McCLELLAN: One, I kind of just disagree with the premise of
the way you look at it. One, you look at the estimates that you have
for legislation like this, like Medicare, and the Congressional Budget
Office numbers are the legislation that everybody was working from when
this was moving through Congress. And those estimates by the CBO
actuaries said that it would be an additional $400 billion over the
next 10 years. And they continue to say that's what the number will
be.

Like I said, when it comes to making the kinds of assumptions you
do with complex legislation like this, that slight changes in
assumptions can change those estimates significantly. But either way
you look at it, we think it's a reasonable range to look at the
Medicare legislation moving forward. And so we're looking at it. But
like I said, slight changes in assumptions can significantly impact
those estimates.

So we'll continue, as we always do, continue to look at those
estimates, moving forward. And as we learn more -- I mean, this is a
new -- a whole new effort here for America's seniors. As we move
forward, we will continue to look at those estimates and continue to
provide the American people with the best estimates, as we go -- as we
move forward. The President is always very clear with the American
people in the decisions that we are making, and very up front with them
about the information that we use.

Q So you would have us believe that HHS never took a look at
the estimate for the prescription drug bill until after the bill was
passed?

MR. McCLELLAN: John, I think that is not what I said. I think
I've addressed this issue. We'll go back to Bob's follow-up.

Q Oh, so they did look at it before it was passed?

MR. McCLELLAN: Go ahead, Bob.

Q I was just going to ask you a similar thing to what Anne was
suggesting, which is, you've had a week in which Dr. Kay's testimony
has been sharply at odds with the picture the White House painted
before we went to war, with respect to the weapons of mass destruction
in Iraq. And then, in the last couple of days, it's turned out that
the cost of this Medicare program is going to be $134 billion more than
the White House presented it just a few weeks ago. Are you concerned
that there's a credibility issue --

MR. McCLELLAN: Wait, that the White House presented what a few
weeks ago?

Q The cost of the Medicare program.

MR. McCLELLAN: This is our first estimate.

Q I appreciate that it was CBO numbers --

MR. McCLELLAN: No, this is our first full and complete estimate.
Let me be clear on that.

Q I appreciate that, but I'm saying the President was selling
the country and endorsing a program that the country was told was going
to cost $400 billion. Now we're off by $134 billion.

MR. McCLELLAN: The country was told that it was going to provide
our seniors with prescription drug coverage. And the country was told
that it was going to make -- or allow seniors to have more choices and
better benefits so that they can have the kind of modern medicine that
they deserve. You had a Medicare system that needed updating, that
needed improving. And seniors could still choose the plan that they're
in now, if they so choose. But now they will have other plans to
choose from. And those seniors that didn't have prescription drug
coverage are going to see their drug costs roughly cut in half; many
will see much greater savings than that. That's what the President
told the American people.

Q I'm just seeing if there's a response --

MR. McCLELLAN: And I think that you have to keep in mind that this
is -- and let me reiterate -- this is a very complex piece of
legislation. It is difficult work, trying to come up with these
estimates. You have hundreds of assumptions that you make looking at
the legislation, which had more than 400 pages of information in it.
So there are hundreds of assumptions that go into it. And differences
-- slight differences in assumptions can impact those estimates. But
we still believe that you're in a reasonable range, with the
Congressional Budget Office actuary estimate and the HHS actuary
estimate.

Q I just wonder if you think there's a credibility gap here
that needs to be responded to.

MR. McCLELLAN: In what sense, Bob?

Q In the sense that in these two instances, the White House has
painted a picture, at one point, weapons and the cost of the Medicare
--

MR. McCLELLAN: Let's address each of these issues. Let's take each issue. In terms of Iraq and the intelligence there, that was intelligence shared by intelligence agencies around the world. It was shared by the United Nations. Let's be very clear on that. Do you agree with that?

Q Well, my view is not relevant.

MR. McCLELLAN: No, sure it is; if you're asking this question,
let's put the facts on the table. The facts are that this was
intelligence that was shared by agencies around the world. It was
shared by the United Nations. We had a closed society -- a closed
society with an oppressive regime who had a history of using weapons of
mass destruction, who had a history of weapons of mass destruction
programs, who used chemical weapons on his own people, who used
chemical weapons on a neighboring country. And you had a regime that
was intent on dominating the Middle East. You had a regime that defied
the international community for some 12 years and some 17 resolutions.
You had a regime that was a dangerous and gathering threat. And no one
was disputing that fact, or very few were disputing that fact going
in. And we know, from what we know now, that it was, indeed, a grave
and gathering danger. And we removed that regime from power. So let's
be very clear about the facts here, as we bring up those questions.

And let's be very clear about the facts that relate to the Medicare
legislation. The CBO actuaries made their estimate. That is the
estimate that everybody was working from. And we come up with a budget
every year. And every year we have to make our estimates. And our
actuaries -- it's not -- it's the norm, it's not the exception for them
to come up with different estimates of a variety of programs, like
Medicare and other entitlement programs, as well.

Q Scott, the $400 billion figure was one the President started
out with. It was in his list of principles. Are you suggesting he --

MR. McCLELLAN: I'm sorry, can you start over?

Q Absolutely. The President repeatedly used the figure $400
billion; it was in his list of principles of what he would accept in a
Medicare bill to begin with. Are you telling us he signed the bill
thinking, well, it could be $400 billion, could be something else?

MR. McCLELLAN: No, he signed the legislation for the reasons that
I stated. And he signed the legislation based on the Congressional
Budget Office estimate, right.

Q Which he accepted.

MR. McCLELLAN: I'm sorry?

Q Which he accepted.

MR. McCLELLAN: That was the estimate. That was the estimate.
That was the estimate that the Congressional Budget Office put
forward. They still stand by that estimate, Mark. That's the same --

Q So does he --

MR. McCLELLAN: No, no, let's be clear. That estimate has not
changed. That estimate has not changed.

Q -- the budget is wrong?

MR. McCLELLAN: That estimate is still $400 billion over 10 years.
That is the -- that is what Congress has to work from.

Q Scott, when he signed the legislation, did he have any
estimate, even if it wasn't a full and complete estimate, but did he
have any estimate at all from his own people, own actuaries, that
indicated that the cost might be more than $400 billion? Did he --

MR. McCLELLAN: The estimate that we worked from was the estimate
Congress was working from. That's the estimate that was required to
work from --

Q So he did not?

MR. McCLELLAN: No, I just told you, Keith --

Q So he had no idea -- he had no idea that his own actuaries
might come up with something higher; is that correct?

MR. McCLELLAN: Keith, I just told you that this is the first full
and precise cost estimate --

Q I said he did not --

MR. McCLELLAN: -- that the HHS actuaries have come up with for our
budget. I mean, that's it. The HHS actuaries, obviously, were looking
at different aspects of the legislation. And, certainly, actuaries at
HHS and actuaries at CBO will make different assumptions, and so
they're going to have different estimates.

Q So the answer is, no, he did not know from his own --

MR. McCLELLAN: He just addressed that. He just addressed that in
the Roosevelt Room. And I've addressed it previously from this
podium. But if we have other questions, let's keep going.

Q Just a quick one. The President was very careful not to answer the question about whether he supported an independent commission on Iraq. Is there any movement on that? Does the White House --

MR. McCLELLAN: What the President made very clear was that it's
important that we gather all the facts and it's important that we
compare those facts with what we believed before the war. He's very
committed to making sure that we do that, that we look at all the facts
and compare that with what we knew before the war. Intelligence is
something that we take very seriously in this administration. We live
in the 21st century, where there are many new and dangerous threats
that we face. The war on terrorism is our highest priority. You have
outlaw regimes with weapons of mass destruction in this world. You
have a problem with proliferation of weapons of mass destruction. And
we've got a national security strategy that is confronting those
threats and addressing those threats, in many different ways.

But no one wants to know more than the President. No one wants to
know more than the President. And the mission of the Iraq Survey Group
is to find the truth, so that we can draw as complete a picture as
possible and compare that information that they learned on the ground,
the facts, with what we knew before the war. But, regardless, Saddam
Hussein's regime was a grave and gathering threat.

MR. McCLELLAN: David is dialing 911. He's got to get his question
in. (Laughter.)

Q If Congress will go along with extending the deadline for the
work of the 9/11 commission, will the White House go along with such an
extension?

MR. McCLELLAN: Well, one, I think that discussions like that you
would have to have with Congress and you would have to have with the
commission, itself, because these were discussions that were held
before the commission was created, or with the commission, actually.
When Congress set it up, it was all agreed to that they would work to
meet a certain timetable, because it's important that we learn
everything that we can from the attacks of September 11th, so that we
can do a better job, going forward, for the American people.

Q So if Congress says give them more time, will the White House
go along?

MR. McCLELLAN: And so it's best to let those discussions be held
with Congress and the commission and the administration, when you talk
about that. But we continue to believe that the 9/11 commission should
move forward as quickly as possible to get the job done. That's why
we've been providing them unprecedented cooperation, to make sure they
have all the information they need to do a complete job.

Q Will you go along with --

MR. McCLELLAN: And so -- again, you're asking me to negotiate or
discuss those matters from this podium, and that's not the place to do
that. We've been working very closely with the commission, to make
sure they have all the information they need to do their job. And
that's what we will continue to do. And if they have issues that they
want to raise, then we'll have those discussions with them.